Good Advice ‘realistic’ model for industry

The ‘Good Advice’ model of financial advice put forward by the Quality of Advice Review proposal is a realistic option for the industry, according to Ignition Advice.

The proposed advice model, put forward by reviewer Michelle Levy, would be principle-based, simpler and more direct than current methods.

The Hayne Royal Commission had improved and cleaned up the industry with higher educational requirements and stricter regulation but it meant many had opted to exit instead as they felt it had become too expensive and complex.

It also included proposals such as relaxing documentation requirements such as Statements of Advice, encouraging institutional participation and broadening the definition of who could provide personal advice.

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Ignition Advice Asia-Pacific chief executive, Craig Keary, said: “Ms Levy offers a new model – Good Advice. She is explicit that this is not necessarily the ‘best’ advice in any situation, but advice which is reasonably likely to benefit the client based on their circumstances at the time the advice is given,” Keary says.

“While no set of proposals is perfect, the good advice model offers a realistic path to high quality financial advice being available to all Australians who would benefit from it, in ways that are accessible and affordable.”